Xi Jinping seeks bigger voice for BRICS on global economic governance
President Xi Jinping said the leading developing countries should have a larger say in global economic governance during his visit to Australia for the G20 summit. Analysts said that fitted with China's efforts to promote its global economic status.
President Xi Jinping said the leading developing countries should have a larger say in global economic governance during his visit to Australia for the G20 summit. Analysts said that fitted with China's efforts to promote its global economic status.
Xi made the appeal on Saturday at an informal meeting with other leaders of the so-called BRICS - Brazil, Russia, India, China and South Africa - before the summit got under way in Brisbane over the weekend.
"Economic cooperation is the sustaining power to drive the development of the BRICS nations," Xi said. He said the countries should develop an integrated market and promote better financial connections, infrastructure and cultural exchanges. The president pledged to make long-term plans for economic cooperation and to build a closer economic partnership.
Xi also called for the establishment of a development bank and contingency reserve arrangements among the BRICS nations. That was an important step for China to expand its investment capacity while promoting its economic status, said Li Lifan , an expert on Central Asian affairs at the Shanghai Academy of Social Sciences.
The BRICS leaders signed a landmark agreement in July to create a development bank and a US100 billion currency exchange reserve.
Establishing regional development banks for emerging economies was a good way for China to make better use of its foreign exchange reserves and enlarge its investment channels, Li said.
"China will invest about US200 billion in infrastructure for neighbouring countries. It is preparing to invest US$60 billion in the BRICS Development Bank, plus US$40 billion in the Silk Road Fund proposed at Apec, and another investment in the Asian Infrastructure Investment Bank and the Shanghai Cooperation Organisation Bank," he said.
Li said regional development banks could offer very low interest rates to counter the influence of a Western-dominated international currency system.
"Raising China's stakes in international financial markets should not only depend on gross domestic product," Li said. "It should rely more on the overall strength of the country and its foreign investment capacity."
Xi urged countries to push for positive results at the G20 summit and to help implement the International Monetary Fund's quota and governance reforms, which aimed to boost the voting power of dynamic emerging-market and developing countries.
In addition to economic cooperation, Xi also said the BRICS nations should cooperate more closely on international politics and security.
